It's unclear to me why this should not be illegal." If you own two social media utilities, they should not be allowed to shore each other up. "It was collusion, but within an internal monopoly.
"The question was how do we position Facebook and Instagram to not compete with each other," a former senior Instagram employee told the subcommittee (the report did not name this person). (This article is syndicated from Equitymaster.Among the findings was a 2018 internal company document titled the Cunningham Memo in which Facebook Senior Data Scientist Thomas Cunningham informed CEO Mark Zuckerberg and Vice President of Growth Javier Olivan that Instagram could hit a "tipping point" where its growth could ultimately come at the expense of all users leaving Facebook's blue app. Of course, one must also examine the company’s valuations as well as its intrinsic value and margin of safety. Hence, a smart way to invest is to pick companies with strong moats. If the moat is weak, ultimately, competition will spoil the game, erode returns, and take away market share and profits overtime. The wider the moat, the stronger the business. In investing, it refers to a business's ability to maintain its competitive advantage over its peers to protect market share and ensure sustained profits. Legendary investor Warren Buffett has always discussed the idea of investing in companies with moats.Ī moat in general is a deep, wide ditch surrounding a castle, fort, or town, typically filled with water and intended as a defence against attack. Read our editorial on MTNL, the monopoly player back in 2002, and how it went from being debt-free to heavily indebted, and also lost 88% of its marketcap. While much has been said about investing in such companies, you must investigate if the company can remain profitable for the future.Īlso, without the absence of government support, monopolies are difficult to establish and maintain. It has 40% market share as an insurance repository. Over the last five years, the company has grown its market share from approximately 61% during March 2015 to approximately 70% during December 2020, based on AAUM serviced.Īpart from being a registrar for mutual funds, CAMS also offers solutions for alternative investment funds and portfolio management services.
The second player, Karvy, is at a distant 26% market share. It is India’s largest registrar and transfer agent of mutual funds with an aggregate market share of approximately 70% based on mutual fund average assets under management (AAUM) managed by its clients and serviced by them. If you have been an investor in mutual funds, you would have surely come across or accessed the account statements from CAMS.Ĭompute Age Management Services (CAMS) is a technology-driven financial infrastructure and services provider to mutual funds and other financial institutions since over two decades. New participants are always likely to prefer the leader in such cases. More participants mean more efficiency and better price discovery. IEX being the first has majority of the volumes on the exchange. The first mover advantage is big in such cases. Why would you switch to any other new exchange? You are a buyer or seller and know that everyone is on an exchange. Be it stock exchanges like NSE or BSE, or be it depositories CDSL or NSDL, exchanges are always characterised by a monopoly or duopoly. It’s important to understand the nature of the exchange market. contracts less than 1 year) traded over exchanges in India. IEX accounts for 95% of the short-term electricity contracts (i.e. Indian Energy Exchange (IEX) and Power Exchange of India (PXIL) are the two nodal power exchanges in the country. It remains to be seen how IRCTC shares perform in the coming months as rail services open gradually. During the year, IRCTC managed on-board catering services in 19 Rajdhanis, 2 Tejas, 1 Gatiman, 1 Vande Bharat, 22 Shatabdis, 19 Durontos, and 296 Mail Express trains. Also, the growth of the catering business seems on a strong footing.
On an average, about 0.8 m tickets were booked daily through IRCTC's website and app during that year. E-tickets booked online through IRCTC's website and app accounted for 72.25% of the total reserved tickets over Indian Railways in financial year 2020. Here’s what Tanushree Banerjee, Co-head of Research at Equitymaster, and editor of the premium recommendation service Forever Stocks, has to say about the company.ĭespite being a PSU, IRCTC has a wide moat that few other travel and tourism companies can claim to have.
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